NAIROBI (CoinChapter.com) — The cryptocurrency market has been hit hard, with over $1 billion liquidated in the past 24 hours, according to CoinGlass data. Of this, $856.7 million came from long positions, as Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE) saw sharp declines after weeks of bullish momentum.
Bitcoin Declines Below $100,000, Eyes Further Losses
Bitcoin (BTC) continued its slide on Dec. 20, falling to $95,536 after losing the key $100,000 psychological support level. This marks a steep 7.8% decline from its recent all-time high of $108,353, leaving traders bracing for further losses.
Bitcoin’s ongoing sell-off has been driven by its inability to hold the 0.618 Fibonacci level at $102,106. If the correction continues, BTC could test the $91,500 support level. A breach of this zone may lead to a deeper drop toward $85,000, increasing downside pressure.
For a recovery, BTC must reclaim the $100,000 psychological level. If successful, it could retest its all-time high of $108,353, with the next major resistance at $120,679 (1.618 Fibonacci extension). However, broader market liquidations exceeding $1 billion add to the fragility of sentiment, leaving the market vulnerable to further volatility.
Ethereum Price Falters Amid Bearish Momentum and Macro Pressures
Ethereum (ETH) extended its decline on Dec. 20, trading at $3,284 after a sharp rejection from the $4,000 resistance earlier this month. The 14% pullback underscores the bearish sentiment that has gripped the broader crypto market following the Federal Reserve’s hawkish policy signals.
Ethereum’s bearish momentum deepened as the price fell below key levels on the Ichimoku Cloud. It broke under the Tenkan-Sen ($3,687) and Kijun-Sen ($3,681), indicating heightened selling pressure. The price now nears the cloud’s lower boundary, with a potential test of $3,232.
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The RSI is at 42, signaling bearish momentum. ETH’s bearish double-top pattern at $4,103 adds to downside risks. If ETH fails to hold support at $3,335, it may decline further to $3,029.
However, Ethereum’s fundamentals remain strong. Over 54.7 million ETH tokens are staked, backed by 206,000 unique stakers. Additionally, Ethereum ETFs recorded $2.46 billion in inflows across 18 consecutive days, highlighting growing institutional interest.
Dogecoin Slides as Bulls Lose Momentum
Dogecoin (DOGE) fell 5.6% on Dec. 20, trading at $0.296. This marks a sharp drop from its Nov. peak of $0.482. DOGE is now testing critical support amid market volatility.
The 1.618 Fibonacci level at $0.284 serves as immediate support. A breakdown below this could push DOGE toward $0.25. On the other hand, reclaiming $0.36 (1.0 Fibonacci level) could hint at a potential rebound.
Technical indicators show DOGE is oversold. The RSI is at 31.65, close to the oversold threshold of 30. Similar conditions have preceded price recoveries in the past.
DOGE’s current correction—down 28% over 35 days—has been less severe than its 2021 bull market decline of 55% in 25 days, suggesting a more gradual pullback this cycle. Market specialist Master Kubrick notes the narrowing timeframe between RSI peaks, which could signal an eventual upward breakout.
The cryptocurrency market correction has erased weeks of gains, with Bitcoin, Ethereum, and Dogecoin nearing critical support levels.
